nikunj finance

8/3/2019 Nikunj Finance

1/26

1

TITLE PAGE

AUTHOR NAME: NIKUNJ P. PATOLIA

ID : 0809BHC361

PROGRAMME : ADVANCED PROFESSIONAL DIPLOMA

IN MANAGEMENT STUDIES

UNIT TITLE : MANAGING FINANCIAL PRINCIPLES

AND TECHNIQUES

PURPOSE : ASSIGNMENT WORK

SUBMIT TO : MR. TAWFIQ ELAHI

WORDS COUNT : 3742


2/26

2

Declaration

Learners Name:.

ID..Class (Course)..Unit title

Date assessment details issued..Date handed in .Words Count: .

I confirm that this is my own work and that I have not plagiarized any part of it. I havealso noted the assessment criteria and pass mark .I declare that the work I amsubmitting for assessment contains no sections copied in whole or part from anyother sources, unless it is explicitly identified by means of quotation mark or in thecase of very long quotations, by means of wholly indented paragraphs. I declare thatI have also acknowledged such quotations by providing detailed references in anapproved format. I understand that unidentified and un-referenced copying bothconstitutes plagiarism which is a very serious offence

Learners signature_______________________________ Date / /


3/26

3

AcknowledgementThis is a work based on the financial analysis of business and the necessary tools

and techniques to do this work. The work of this assignment is divided in three

sections. In two sections, we have to select an organisation and we have to suggest

them in financial measurement.

For making this assignment, the class lecturer Mr. Tawfiq Elahi helped me. I am very

thankful to him because he gave me all ideas and concepts to use in this

assignment. I asked him everything in the class of this course and he explained me

all the things in details and in friendly ways. So, it was be easy for me to understandand also in calculation of Free cash flow and NPV, he gave me a case study chart of

another two projects. So, it was ideal for me in answering this assignment.

The ratio analysis is very helpful in measuring financial viability of the business. we

have considered all the rations here and again I am very happy to make this work.

The whole work is with the quality and the all analysis is qualitative as Mr. Tawfiq

told me to do the qualitative analysis and work in this assignment.


4/26

4

Contents

No. ofTasks

Details PageNo.

I Introduction 5

1.1 Forecasting of costs andrevenue

6

1.2 Available and possiblesources of finance

9

2.1 Methods of investmentappraisal

11

2.2 Appropriate financialinformation

14

2.3 Recommendations beforeimplementation

17

3.1 Financial statement forviability

18

3.2 Performance audit byInternal and Externalstakeholders

21

3.3 Calculations to improve thequality

23

3.4 Recommendations onstrategic portfolio

25


5/26

5

IntroductionThe assignment is on the financial principles and techniques. The work of the

assignment is divided in three sections. In the section one, I have selected one

company called Tata motors. The company is existing in the Indian market and the

figures shown in the answers are in Indian currency and also in Crore. In the first

task, there is a detailed about the costs and revenue of the business. That means

the usable revenue of the company and costs of the company. I have mentioned the

costs of the business over last 5 years and profit of the company over last 5 years.

This will give the better ideas and opinions to use forecasting methods. The method

of forecasting are linear regression, time series, trend method etc. we have usedhere co-relation method and also the inflation rate of the country is also shown

because it will give the better ideas in calculating of future costs and revenue of the

company.

In addition, there is also finding the sources of the funds and it is a case study of one

Rugby club. The possible sources are also shown in the answer of the question and

on the basis of it, club can do improvements in the situation.

The work of task 2 is depend on investment appraisal of the two projects. There are

two projects shown and the calculations of ARR, Payback period, DCF and NPV isalso calculating and it is shown in the chart. There are also some recommendations

before implementing the plan and the projects.

The last task is for the assessment of financial viability of the business. it will be

possible with the help of ratio analysis. So, for this purpose, the calculations of ratio

is mentioned and it is in profitability, utilization and also in risks analysis. The details

of all ratios is mentioned with the help of complete formulas.


6/26

6

TASK: 1

Q: 1.1

Forecasting of costs and revenue

In the answer of this question, there is information about the one big reputed Public

Limited Company called Tata Motors. The company is manufacturing vehicles called

passenger vehicles, commercial vehicles, heavy loaded vehicles etc. in the answer

of this question, there is a forecasting methods of costs and revenue on the base of

last 5 years profit &Loss statement of company. we will discuss about the costs and

revenue and on that base, we will do forecasting methods in this answer.

Costs:

Costs are a critical element of necessary information for successful maintenance of

business. The types of costs are fixed costs and also variable costs. The term of

fixed costs is linked with the time and it is not linked with level of business activity.

So, there will not be easily changes in fixed costs. The variable costs are linked with

the level of output. The examples of variable costs in business are inputs as labour,

fuel and raw materials. The total of fixed and variable costs will be total costs for the

business. if, Tata will have a high proportion in fixed costs in total costs then it may

be seen the high efficiency of more profit and more sales.

Revenue:

The concept of revenue is income received by company as a result of trading

activities of business. the revenue of the business can be calculate by using this

formula, Sales revenue=volume of sold goods avg. Selling price. There is an

alternative way for boosting revenue of company by charging low prices for

consumers in products.

Last 5 Years Net profit:

Mar.06: Rs. 1,528.88 (crore)

Mar.07: Rs. 1,913.46 (Crore)

Mar.08: Rs. 2,028.92 (Crore)

Mar.09: Rs. 1,001.26 (Crore)


7/26

7

Mar.10: Rs. 2,240.98 (Crore)

Last 5 years Costs:

Mar.06: Rs. 18,199.18 (Crore)

Mar.07: Rs. 24,427.42 (Crore)

Mar.08: Rs. 25,696.61 (Crore)

Mar.09: Rs. 23,699.53 (Crore)

Mar.10: Rs. 31,992.35 (Crore)

Inflation rate:

Inflation rate of Indian economy was 9.70% in October 2010. If, we talk about theinflation rate from January 2010 to October 2010, there is a constant reduction in the

rate of inflation. The rate started from 16.22% from January 2010 then there was

reduction of 1% every month and at the end of October 2010, it became 9.70%. Due

to this rate gone down, the costs are also gone down because inflation rate is falling

down and so, the costs of business are also falling down. The prices of Motors of

today are too less in compare of last year and also in nearest future, it will fall down

further because the rate of inflation is falling down constantly.

(http://tradingeconomics.com/Economics/Inflation-CPI.aspx?... Refer online on 08th

Dec. 2010 at 22:36pm)

Calculation of Co-relation:

The concept of Co-relation is a mathematical concept. This will show the inflation

rate and the costs of the business of Tata motors. If, the inflation rate will be up then

prices will gone down and revenue will be up and costs also will be up. If, the

revenue will be up then production in company is also gone up. So, it will generate

more costs in the business of Tata. This will be easy to understand with the help of

chart of co-relation calculation.

For forecasting of costs and revenue in the business of Tata Motors, the suitable

method for that are linear equation regression analysis, the method of time series.
http://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pm


8/26

8

YEAR

X(Inflation

rate) Y (Revenue)

1 13.73 871.67

2 11.25 924.31

3 9.7 1,019.42

4 8.6 1,143.21

5 7.8 1,219.42

6 6.9 1,306.21 0.95865

This is a examples of analysis of Indian economys inflation rate and the total last 5

years revenue of Tata Motors. The amount of Tata Motors are in crore and the rate

of inflation is in percentage. So, there is a positive co-relation between the two

factors.

Forecast of revenue and Costs:

Recently, we have already discussed about the last 5 years revenue figures and

costs figures of Tata Motors. From that figures, it can be clearly seen that the

revenue increase first 3 years and again it gone down in 4th year and also increase in

last year. The costs of the company are increasing and in 4th Year, it also had gone

down and again rose.

So, in forecasting of first years revenue and costs, if revenue will increase then the

costs will obviously increase. There is also a positive co-relation between the

inflation rate of country are revenue of company. the inflation rate is going down inthe country and the prices are also going down.

Profitability:

This is a profitable company in the market. There is a reason for this because the

inflation rate of the country is going down constantly and so, the prices of the goods

and products are becoming lower and lower. So, the financial conditions of the

people are being good and they can buy the products of company. in addition, Tata

is launching a cheap vehicles also. So, the business will increase and it will increase

the profitability of the company.


9/26

9

Q: 1.2 Available and Possible sources of finance

The financial sources for the business are for the short term and also for long term.

The finance can be generated in business by many ways. In the general business,

the sources of finance are personal savings, Bank Loans, Bank overdraft, profit ofbusiness etc.

This is a case for Middletown Rugby Union Club. There are many possible sources

of finance and revenue for the business. This is a club and the financial structure of

the club is made by subscription fees of the membership, the donations from the

members and the sponsorship deals with another company. so, the finance sources

are many in this club. We will discuss about all in details.

Available sources:

The available finance of MRUC is membership subscription fees, Donation from the

members of the club, Income of giving sponsorship to local chain of garages, the

charges from spectators etc. The average numbers of spectators for the week are

8000 and the charge from each spectator is 10. So, the total charge will be 80k.

The numbers of games in home ground are 16. So, total revenue will be 1.28

million. These are the present sources of finance for this club and the many can be

generated for the club business.

Possible Sources:

The possible sources of revenue for the club are income from match and

sponsorship details.

Income from Match fees

Community club

Membership charges

May Use Lottery Scheme for all spectators and can earn money from them

Sponsorship of high amount with other companies

Different financial institutions

Comment:

This club is seeking to take part in league of National division one. The club MRUC

has many sources of finance and revenue for the business. this club can create one

more resource of income for the business. it can start the lottery systems for all the


10/26

10

spectators. There will be a lottery game on the day of the game and at the end of the

game, the draw will be declared. So, it will be helpful in raise some money for club.

Advantages:

These all are resources of revenue are feasible for the business. There is only thingto see that the spectators for the game must be sufficient and as per requirements.

The members are ready to pay and so, this will generate more cash for the club. The

club will do reorganisation of ground pitch, changes in the sitting arrangements and

dressing rooms of players, in parking facility of vehicles, in broadcasting systems of

the game. So, there will be much publicity of the game and it will be helpful in

possible source of revenue of this club.

Disadvantages:

If, there will not be possibility of these sources then the plan of the club will not be

success and the activity of encouraging more spectators will not be successful.


11/26

11

Task: 2

2.1

Use of Various methods of investment for Viability

in business

Investment is a significant concept in the business. if, anyone will do investment then

the business will be possible. The main aim of doing investment in business is to

earn more profit from the business and to make the business viable in the market.

Here, there is an example of two units of business. one is Sports Complex and

another is Community Health Centre. We will measure the viability of business byuse of investments appraisals. There are many methods to measure investment

appraisals in business. But, we will use only two methods called Accounting rate of

Return (ARR) and Payback period method.


12/26

12

roject Cash position Year 0 Year 1 Year2 Year 3 Year 4 Year 5

Period 0 1 2 3 4 5

Cash Inflow

Initial Investment 11,00,000Profit 60000 200000 400000 500000 620000

ports

omplex Net Cash Inflow 11,00,000 60000 200000 400000 500000 620000

Cash Out flow

Cost on capital 4800 16000 32000 40000 49600

Residual Value 220000

Net Cash Outflow 220000 4800 16000 32000 40000 49600

FCF 880,000 55200 184000 368000 460000 570400

Equivalent PV 48000 46943.76 46785.85 46762.18 46758.63

ARR 38.14%

NPV 235250.42

Cash Inflow

Initial Investment 800000

Profit/Loss -40000 140000 220000 300000 380000Net Cash Inflow 800000 -40000 140000 220000 300000 380000

ommunity

ealth Cash out Flow

entre Cost On capital 3200 11200 17600 24000 30400


Net cash Outflow 80000 3200 11200 17600 24000 30400

FCF 720000 -43200 128800 202400 276000 349600

Equivalent PV

-

37565.22 36738.6 36615.02 36592.14 36589.36ARR 34.03%

NPV 108969.9


13/26

13

So, the above mentioned chart shows the ARR of the projects and for the finding of

Payback period, we will do the work now.

Payback Period:

The work of payback period is related to the time period of return on investments

from business. there are two projects for the calculations and the work of it will

classified like this.

Sports Complex:

Payback period= No. of years Initial investment

Total amount received= 5 1100000

1780000

= 3.09 years

Community Health Club:

Payback period= No. of years Initial investment

Total amount received

= 5 800000

1000000

= 4 years

If, we will do analysis of payback period of these both projects then we can see that

the project of sports complex will take short time to recover the money from the

investment. So, it is more effective than the community club.


14/26

14

2.2 Financial information for making of strategic

Decisions on investment

If, the business wants to do strategic decisions of finance then knowledge ofinvestment appraisals will be appropriate. This will give the better ideas in strategy

making for the lone time period of the business. The information and data of cash

inflows, balance sheet will be also needed for that and they will also give the

sufficient information on that.

In the answer of this question, we will show the chart of NPV for both the projects

and the chart will show all the calculations of NPV of both the projects.

Discounted cash flow:

It will be also helpful in this investment appraisal system. That means, the Present

value and Future value of the project should be decided first and on the base of it,

the discounted cash flow will be measured. The total of all present value will be NPV

and it is DCF for these both projects.


15/26

15

Project Cash position Year 0 Year 1 Year2 Year 3 Year 4 Year 5

Period 0 1 2 3 4 5

Cash Inflow

Initial Investment 11,00,000

Profit 60000 200000 400000 500000 620000

Sports

Complex Net Cash Inflow 11,00,000 60000 200000 400000 500000 620000

Cash Out flow

Cost on capital 4800 16000 32000 40000 49600


Net Cash Outflow 220000 4800 16000 32000 40000 49600

FCF 880,000 55200 184000 368000 460000 570400

Equivalent PV 48000 46943.76 46785.85 46762.18 46758.63

ARR 38.14%

NPV 235250.42

Cash Inflow

Initial Investment 800000

Profit/Loss -40000 140000 220000 300000 380000

Net Cash Inflow 800000 -40000 140000 220000 300000 380000

Community

Health Cash out Flow

Centre Cost On capital 3200 11200 17600 24000 30400


Net cash Outflow 80000 3200 11200 17600 24000 30400

FCF 720000 -43200 128800 202400 276000 349600

Equivalent PV-

37565.22 36738.6 36615.02 36592.14 36589.36

ARR 34.03%

NPV 108969.9


16/26

16

So, from the calculation, it can be measure that NPV of Sports complex club is high

than the other project of Community Health centre. So, the project of sports club is

measurable in the business and it will be more profitable.

There is a suggestion to selectors of the project to select the project of sports club as

all the values of high of this project in comparison of other project and payback

period is also low in comparison of other project.


17/26

17

2.3 Factors needed at the time of taking project

Decisions

There are many factors available before the final decisions taken. These are calledas recommended factors. If, business does all the calculations of finance and other

things, still the efficiency of the project should be measured and on the base of it, the

recommendations can be created. This will help in making the final decisions of

investment appraisals.

(1) Sports Complex:

The project should be consider after all calculations and then on the base of it, the

strategic should be thinks about and final decisions will be taken.

The efficiency of the project should be measured and it should be done in the

systematic and proper ways.

The reality of the project must be consider and if, there will be anything find in

contrast of reality then the project should not be implemented.

NPV of the project should be assessed first and here it is more than 20k. So,

it is good for the business of this project.

There is one thing and it should be assessed that the project is desirable to

the organisation or not.

What is the payback period on the investments of the project and it should bemeasure for the project.

(2) Community Health Centre:

This is another project shown in the example. The all calculations between these two

projects show that this project is less efficient than the project of sports complex. Still

there are many recommendations before project implementation.

NPV of project should be positive and it is here more than 10k and it is also

positive in the operations of the business.

The payback period is less than other project but it is not too much.

The profitability of the project and efficiency of the project should be

mentioned.


18/26

18

Task: 3

3.1

Use of financial statements for financial viability

For measuring viability of organisation in Tata Motors, ratio analysis will do better

help. The main rations of profitability, sales turnover, cost of capital etc. will give

better knowledge in company information.

The rations will be used in this question are Gross Profit ratio, Net Profit ratio, Return

of Assets ratio, Operating Profit ratio. These rations will be helpful in identifying

financial viability of business.

Gross Profit Ratio:

For the knowledge of Tata Motors gross profit on sales, this ration will be helpful.

The profit will be gross and the expenditures of the business are excluded from it.

The amount of the profits are in Rs and in crore. The amount of sales and gross

profit are in crore.

Gross Profit Ratio: Gross Profit 100

Sales

= 19.346.25 100

35,773.26

= 54.08%

This ratio is 54.06%. it will show that gross profit on sales of the business is quite

good.

Operating Profit Ratio:This is a profit before paying interest and taxed in the business. the amounts of

operating profits and sales are in Crore.


19/26

19

Operating Profit Ratio: Operating Profit 100

Sales

= 14,032.83 100

35,773.26

= 39.22%

The operating profit is less than gross profit because the expenses of interests and

taxes are too high in the business. So, the rate of profit is reducing.

Net Profit Ratio:

Net profit is a total final profit for the business. it is calculating after deducting all the

expenditures of the business. The figures of profit and sales are in Crore.

Net Profit Ratio: Net Profit 100

Sales

= 10,421.19 100

35,773.26

= 29.13%

The ratio of Net profit on sales is quite good and also it is sound for the business.

The profit of company is increasing day by day. Tata Motors is profitable business

and it can be known by this ratio.

Current Ratio:

Current ratio is useful to know the situation of currents assets and Current Liabilities

of company. if, the current assets will be high than liabilities then it will be profitable

business.

Current Ratio: Current Assets

Current Liabilities

= 12,329.48

19,672.73


20/26

20

= 0.63: 1

This ratio will show that current assets of Tata are less than current Liabilities. That

means, company has debt in this. This ratio will not be profitable in business.

(http://www.bizfinance.about.com/.../financial ratios/.../Profitability_ratios.html referon internet on 9th Dec. 2010 at 08:49pm)
http://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pm


21/26

21

3.2 Internal and External stakeholders analysis

The performance of the business is mainly depending on the stakeholders of thebusiness. The stakeholders for the business are internal and external. These

stakeholders will have an impact on utilization ratios of the company.

Internal stakeholders:

Internal stakeholders are employees managers and directors of the company Tata

Motors. They will be helpful in making the significant decisions of the business. They

are the main in the board of directors of the company. If, the profitable ratios are

profitable in Tata and this is all because the efficient work of these stakeholders.

External Stakeholders:

The external stakeholders for the business of Tata Motors are shareholders,

customers, suppliers, distributers, government etc. they all take an interest in the

work of the business and they all are important to take decisions outside the

business. So, they all are very important to measure viability in the business.

(http://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm refer online

on 9th Dec.2010at22:55pm)

Macroeconomic factors:

The macroeconomic factors of the business can affect to the business. these factors

are changes in income level, future prospects of employees, Political environment,

natural disasters, changes in prices of raw materials, changes in the world market of

world. These all are the macroeconomic factors and may have an effect on the

financial viability of business.

This performance audit of business can be well known with the help of ratios of

utilization. It is as follows.

Assts Turnover Ratio: Revenue 100

Total Assets

= 35,775.56 100

1,03,212.42
http://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pm


22/26

22

= 34.66%

The assets turnover ratio is 34.66% and it is good. The assets of the company are

turnovers very well. That means, the revenue of the company is increasing. So, the

performance of the business is very good for the operations.


23/26

23

3.3 Calculations to improving quality

In the last question, we have calculated the profitability rations and on the bases ofthat ratios. The profitability of the company can be measure. There is also a good

opportunity for the business. company can do some reduction in the costs and then

on the base of it, the profitability of business can be improved.

Now, we will discuss it with the help of profitability ratios and will do comment on

them.

Interest Coverage ratio= EBIT

Interest Expenses

= 3,257.40

1,246.25

= 2.61:1

The interest coverage ratio will show the improvements in profitability. Thecalculations are on the base of profit before interest and tax. It will show that the

profit before interest and tax is very high. It is 2.61 more than 1. So, it will show that,

if company will reduce the expenses of interests and tax of the business then the

business will be more profitable. No doubt, the operations are profitable still, the

changes can be done in it to maximise the profitability of the business.

(http://www.investopedia>dictionary online refer on10th Dec. 2010 at10:45AM)

Net profit Ratio:

Net Profit 100

Sales

= 10,421.19 100

35,773.26

= 29.13%


24/26

24

So, it is also in good percentage in business. still the business profit is less than

some business competitors. So, the cost of capital, costs of interests and taxes and

other taxes of business should be reduced. It will increase the profitability of the

business.


25/26

25

3.4 Recommendations on portfolio based

This is a case for the Tata Motors and also assessment of the financial viabilities of

the business. There are some recommendations for the business to increase the

profitability of the business.

These all the details can be understand with the help of Price/Earnings ratio.

Price/Earnings ratio= Stock price per share

Earning per share (EPS)

=1,269.40

39.26

=32.33

The prices on earnings on each share are good of Tata Motors. The ratio analysis is

showing that it is 32.33 per share.

The recommendations of it are as per follows.

(1) Company should have to provide attractive schemes to the shareholders of the

company. So, the reputation of company will increase in stock market and prices of

shares will be high in stock market.

(2) Tata motors provide dividends on shares to the shareholders of the company.

Among this dividend, company should have to maintain some reserve for the future

of the company. So, in the real time of need, it will be helpful.

(3) The extra reserve of the dividend should be invested in the operations of the

business. So, it will be reinvestment and also more profit can be earn from them for

the business.

(4) The performance audit of company can do better help in financial viability ofbusiness. it should be done at end of every financial year of the company. so, it will

give the better results of performance of the company and also will provide better

guidelines in the future financial structure of the business.

(http://www.investopedia.com>tutorials refer online on 10th Dec. 2010 at12:04pm)


26/26

References(1) http://www.investopedia.com>tutorials refer online on 10th Dec. 2010 at12:04pm

(2) http://www.investopedia>dictionary online refer on10th Dec. 2010 at10:45AM

(3)http://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm refer

online on 9th Dec.2010at22:55pm

(4)http://www.bizfinance.about.com/.../financial ratios/.../Profitability_ratios.html refer

on internet on 9th Dec. 2010 at 08:49pm

(5) http://tradingeconomics.com/Economics/Inflation-CPI.aspx?... Refer online on

08th Dec. 2010 at 22:36pm
http://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://tradingeconomics.com/Economics/Inflation-CPI.aspx?...%20Refer%20online%20on%2008th%20Dec.%202010%20at%2022:36pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.bizfinance.about.com/.../financial%20ratios/.../Profitability_ratios.html%20refer%20on%20internet%20on%209th%20Dec.%202010%20at%2008:49pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pmhttp://www.tutor2u.net/economics/gcse/revision.../work_staholders.htm%20refer%20online%20on%209th%20Dec.2010at22:55pm

nikunj finance

Documents